Business innovation is basically when an organisation to introduce new techniques, products, or services to effect positive transformation in their organisation to improve or enhance internal functioning. This may include improving current processes or practices, or starting completely from scratch. It is the practice of introducing new techniques, products or services to foster competitive edge in an organisation, and thus increasing the overall competitiveness and output. Many businesses have adopted the "innovation culture", that involves a higher degree of organizational innovation and technological restructuring to improve productivity, quality and performance.
One important aspect of business innovation is creating new revenue streams. The strategies that lead to innovation may lead to increased revenue generation. The strategies may involve new product creation, or change the existing product categories. Other strategies may involve changing the ways of delivering services to clients and customers. In addition, corporate innovation will lead to the creation of new revenue channels such as data centres, technical support, and network infrastructure. These revenue channels are usually supported by existing business processes and practices.
Business leaders also need to consider the effects of business innovation on staff morale and motivation. Innovation has been shown to have a positive impact on staff morale and motivation. This is because most innovations create a sense of challenge and ownership. For example, researchers found that innovation in human resources led to an increase in job satisfaction and boosted performance and productivity. The chief transformation officers should encourage and facilitate this attitude among employees.
Another important aspect of business model innovation involves establishing a new industry format for the product. Innovations may be in the form of new industry standards, new industry names, new industry packaging, new industry structure, new industry standards, and other such industry specific changes. All these aspects are essential in the creation of a marketable product. Once these changes have been established, business leaders need to ensure that they are communicated to customers and stakeholders appropriately. Otherwise, new industry standards may not be accepted. In fact, it may even result in consumers rejecting the product and businesses being forced to launch a new enterprise resource planning (ERP) system instead.
One must remember that business models are dynamic and evolving. Therefore, business leaders need to make the best use of the available innovation technologies and business models to get the best results. They need to be flexible to suit changing market conditions and industry trends. If they are not flexible enough, innovative activities may be counter productive. Business leaders need to consider the above-mentioned points and evaluate innovation projects before implementation.
Business innovation strategies can be implemented through a series of activities such as risk assessments, identification of business opportunities, and research and development activities. The key to success in the innovative processes is to ensure that there is a robust risk management function in place. Otherwise, innovations can become totally new and irrelevant to the company's current business objectives. Finally, the company needs to carefully consider all the above aspects before implementing any business innovation initiatives.